A life insurance policy is a
vital investment that secures the financial future of your loved ones. A term
insurance plan is the simplest form of life insurance that provides a substantial
life cover for a minimal premium. As the name suggests, a term insurance is
only valid for a certain period of time, after which there will be no payouts or benefits. It a basic life insurance
policy, that provides compensation only in the event of the death of the policyholder.
Since it is a one-time investment, one
has to make the buying decision with caution. Here’s a step wise guide that
will help you buy the perfect term insurance policy.
Determine the amount of coverage
needed
It very important to assess the
financial needs of your family before choosing the amount of coverage. If you
do not follow this step, there is always a risk of overbuying or being under
covered. Calculate the basic expenses of the family and do not forget to add
liabilities such as loan premium, mortgages etc. Once you have the estimate,
you can apply for the appropriate insurance cover.
Compare different types of life
insurance policies
There are numerous life insurance
providers in the market that offer different types of life insurance policies.
Hence before making the final decision, ensure that you compare at least three
different insurance quotes. This will give you a fair idea about the types of
policies that suits your needs.
Ensure that the premiums are
affordable
Certain life insurance providers
such as AEGON Life offer facilities such as term plan premium calculator to ensure that you can afford the
premium. Therefore, it is a good idea to calculate the premium before buying
the policy, so that you can be sure about affordability.
Go through the policy documents
carefully
Once you have chosen a particular
term insurance policy, ensure that you go through the policy documents
carefully. If you encounter any doubts about the policy, make sure you clarify
them with the insurance company representatives.
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